Post Session: Quick Review

Indian equity benchmarks traded near neutral line for most part of the day and settled first trading day of 2020 with minor gains, on the back of buying by participants. Key indices began the year on optimistic note, as traders took encouragement with report that India's current account deficit (CAD) narrowed to 0.9 per cent of GDP, or $6.3 billion, in the September 2019 quarter, on account of lower trade deficit. It had stood at 2.9 per cent of gross domestic product (GDP), or $19 billion, in the corresponding quarter of 2018-19. On a sequential basis, CAD had printed 2 per cent of GDP, or $14.2 billion, in the June 2019 quarter. Some support also came as the PHD Chamber of Commerce and Industry (PHDCCI) expects India's economy to rebound in 2020 and inflation to remain benign on account of reforms such as reduction in corporate tax.

Markets trimmed some initial gains in early noon session but managed to trade above neutral line, as some optimism remained among the investors with a survey report that with bullish hiring sentiments, private sector players are likely to create seven lakh jobs and the overall increase in salaries is projected to be around 8 percent in the New Year. However, further up-ward move got restricted with Controller General of Accounts in its latest data showing that Fiscal deficit of the Union government rose to 114.8 per cent of the target in the first eight months of the fiscal year.

On the sectoral front, shares of companies related to infrastructure sector ended higher as Finance Minister Nirmala Sitharaman unveiled Rs 102 lakh crore of national infrastructure projects, including Mumbai-Ahmedabad High Speed rail that will be implemented in the next five years. However, jewellery stocks like PC Jeweller and Titan Company ended lower as rating agency ICRA expects jewellery demand to decline by 6-8 percent in terms of volume following high gold prices and weak consumer demand in 2019-20.

The BSE Sensex ended at 41306.02, up by 52.28 points or 0.13% after trading in a range of 41251.18 and 41443.52. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.21%, while Small cap index was up by 0.64%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 1.78%, Utilities up by 1.41%, IT up by 0.61%, Capital Goods up by 0.52% and Industrials up by 0.51%, while Consumer Durables down by 1.40%, Auto down by 0.50%, Telecom down by 0.30%, Bankex down by 0.27% and Oil & Gas down by 0.26% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 2.79%, NTPC up by 2.02%, Infosys up by 1.11%, Mahindra & Mahindra up by 0.98% and Hindustan Unilever up by 0.86%.  (Provisional)

On the flip side, Titan Co down by 2.75%, Indusind Bank down by 1.69%, ONGC down by 1.36%, Bajaj Auto down by 1.21% and Tata Steel down by 0.87% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) said India's current account deficit (CAD), a difference between foreign exchange inflows and outflows, narrowed to 0.9 per cent of gross domestic product (GDP), or $6.3 billion, in second quarter of current financial year (Q2FY20), on account of lower trade deficit. It had stood at 2.9 per cent of GDP, or $19 billion, in the corresponding quarter of 2018-19. 

On a sequential basis, CAD had printed 2 per cent of GDP, or $14.2 billion, in the June 2019 quarter. The contraction in the CAD was primarily on account of a lower trade deficit at $38.1 billion as compared with $50 billion a year ago. During the first half of the FY 20, CAD narrowed to 1.5 per cent of GDP from 2.6 per cent in the corresponding period in 2018-19, on the back of a reduction in the trade deficit, which shrank to $84.3 billion as compared with $95.8 billion a year ago.

Besides, the balance of payment stood at $5.12 billion in the second quarter and $19.10 billion during the first half of this fiscal. Net foreign direct investment stood at $7.4 billion, almost the same level as in second quarter of 2018-19.

The CNX Nifty ended at 12182.50, up by 14.05 points or 0.12% after trading in a range of 12165.30 and 12222.20. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports &SEZ up by 3.18%, Power Grid up by 2.76%, NTPC up by 2.10%, Vedanta up by 1.41% and Mahindra & Mahindra up by 0.95%.  (Provisional)

On the flip side, Titan Co down by 2.79%, Eicher Motors down by 1.95%, Indusind Bank down by 1.70%, Zee Entertainment down by 1.21% and Bajaj Auto down by 1.10% were the top losers. (Provisional)